The Kremlin was offered to reform the institution of the business ombudsman

In Russia, it was proposed to create a national coordinating center for the protection of the rights of entrepreneurs instead of the post of business ombudsman under the president. They want to make the head of the supervisory board of the center the special envoy of the head of state for the protection of business rights. The initiative, in fact, involves the merger of the existing institution of commissioners for the protection of the rights of businessmen with the ANO “Platform for working with entrepreneurs’ appeals” and the digital platform “For Business”, on which entrepreneurs can complain about the pressure of law enforcement officers.

The initiative for a national focal point was developed by the Russian Union of Industrialists and Entrepreneurs (RSPP). Vedomosti got acquainted with the text of the bill. Its authenticity was confirmed to Vedomosti by an interlocutor close to the RSPP, a source close to the presidential administration, and the head of the RSPP Alexander Shokhin.

The creation of the For Business platform was publicly proposed at a meeting of the Supervisory Board of the Agency for Strategic Initiatives (ASI) in January 2019. A month later, Vladimir Putin spoke about it in his message to the Federal Assembly. The ANO “Platform for working with entrepreneurs’ appeals” became the operator for the work, the founders of which, by order of the government, in the same year were the ASI, RSPP, the Chamber of Commerce and Industry (CCI), Delovaya Rossiya, Opora Rossii, and the Ministry of Economic Development.

The CEO of this “Platform” is Elina Sidorenko. It was her large business associations – the RSPP, the CCI and Opora Rossii – that in April 2022 offered the post of a new business ombudsman instead of Boris Titov (he himself represents another association – Delovaya Rossiya).

According to the draft law of the RSPP, the national coordinating center for the protection of the rights of entrepreneurs should work in the form of an autonomous non-profit organization (ANO). It is proposed to include among its founders associations of entrepreneurs, as well as Russia “represented by the federal executive body authorized by the government in agreement with the president.”

A supervisory board should be formed in the national center, which will include representatives of state authorities and business associations. It is the Supervisory Board, as conceived by the RSPP, that submits the candidature of the center’s general director to the meeting of founders, and makes decisions on the appointment of “public representatives”. The Supervisory Board considers and summarizes proposals to eliminate “systemic problems” in regulating the activities of entrepreneurs, establishes a procedure for filing and considering business complaints, and approves a report to the president on the work of the national center.

The Supervisory Board, including its chairman, is approved by the president for five years, the same person cannot be chairman for more than two consecutive terms – as the business ombudsman is now. In turn, the chairman of the Supervisory Board should be, as planned by the RSPP, the special representative of the president for the protection of the rights of entrepreneurs.

The current management of the center’s activities should be carried out by its general director, who is appointed by the meeting of founders on the proposal of the supervisory board. The President has the right to designate ANO, which was established before January 1, 2023, as a national center.

The tasks of the national center are generally similar to the tasks of the current Commissioner for Business Rights. But, in addition, it must ensure the functioning of the digital platform for working with the appeals of entrepreneurs “For Business”.

Therefore, the national center considers complaints from entrepreneurs, which they can transfer to state authorities or officials, go to court. The positions of commissioners for the protection of the rights of entrepreneurs in the regions are proposed to be retained, but they are appointed in agreement with the same center.

RSPP not only drafted the draft law, but also submitted to the Kremlin its proposals for reforming the institution of the business ombudsman, which, in fact, repeat the provisions of the developed draft law. The issue of the “development” of the business ombudsman institution was raised at a meeting between the president and the bureau of the board of the RSPP on March 16, 2023 (this is not mentioned in the open part of the transcript on the Kremlin website), Shokhin recalled in a letter addressed to President Vladimir Putin (also with this document got acquainted with Vedomosti). Titov’s term as commissioner expired back in June 2022 (he took office in 2012), but no decision has been made to appoint his successor. Until now, there is a discussion about the advisability of retaining the position of the business ombudsman in its current form, while the retention of regional commissioners is usually supported.

Therefore, the RSPP, in a letter addressed to Putin, also proposed to merge the existing institution with the ANO “Platform for working with entrepreneurs’ appeals” and the digital platform “For Business”, created on behalf of the president. The functions of the commissioners and this digital platform are duplicated, so their combination can increase the effectiveness of protecting the rights of entrepreneurs, Shokhin writes.

The proposals refer to the abolition of the position of the presidential commissioner for the protection of the rights of entrepreneurs and the transfer of its functions to the non-state level, while maintaining regional commissioners. The letter also proposes to consolidate the status of ANO “Platform for working with entrepreneurs’ requests” in the law.

In this letter, Shokhin clarified that it is proposed to approve the Supervisory Board of the ANO by presidential decree, including representatives of business associations, the leadership of the Kremlin, members of the government, etc. Vladimir Putin – Vedomosti), which, in their opinion, “confirmed its effectiveness.”

Presidential aide Maxim Oreshkin redirected the proposals to First Deputy Prime Minister Andrei Belousov with a request to work out the appeal, and then inform Shokhin and the Kremlin about the results.

Shokhin told Vedomosti that the RSPP is proposing a change in the status of the business ombudsman: instead of an official and his staff, create a non-governmental organization with the participation of the Russian Federation. According to him, now there are several structures that are engaged in protecting the rights of entrepreneurs, whose functions are duplicated.

“In addition to the business ombudsman, this is the ANO Platform for Working with Entrepreneurs’ Appeals, where the supervisory board includes the heads of four leading business associations, the RSPP, the Chamber of Commerce and Industry, Delovaya Rossiya and Opora Rossii, ASI CEO Svetlana Chupsheva, First Deputy Prime Minister Andrey Belousov, Economic Development Minister Maxim Reshetnikov, presidential aide Maxim Oreshkin, deputy heads of four law enforcement agencies – the Prosecutor General’s Office, the FSB, the Ministry of Internal Affairs, the TFR, – says Shokhin. – In addition, in 2016, the president created a working group on law enforcement practice in the business sector, headed by the head of the presidential administration, with approximately the same composition as in the Supervisory Board of the Platform. Therefore, we came up with a proposal to try to combine these structures and create one institution – a national coordinating center.”

The composition of the supervisory board of this national center and its chairman is proposed to be appointed by presidential decree, Shokhin confirmed. According to him, it is possible to take as a basis an already existing ANO, like the Platform, or create a new organization, respectively, transferring to it the funding allocated for the business ombudsman and his staff. Shokhin believes that, in general, their initiative raises the status of a defender of the interests of entrepreneurs – instead of an official and his apparatus, a “powerful structure appears, which includes representatives of the government, business associations, and law enforcement agencies.”

Business Ombudsman Boris Titov told Vedomosti that the institution of the commissioner for the protection of the rights of entrepreneurs should not lose the status of a state institution and the powers given by the relevant federal law. He does not agree that the creation of a separate ANO will increase the status of a defender of the rights of entrepreneurs: “Any, even a very representative, but public institution cannot be compared with a state body, the powers and responsibilities of which are prescribed by a separate law.”

In its current form, there are much more opportunities to carry out their functions in cooperation with other bodies, says Titov: “For example, according to the law, we can suspend the decisions of municipal authorities, participate at the request of entrepreneurs in inspections, courts, and go to the pre-trial detention center without hindrance. All government agencies must respond to us within 15 business days and more. A public institution cannot have such rights.”

Vedomosti sent a request to Presidential Press Secretary Dmitry Peskov.